KOTA KINABALU: Opportunities in Sabah’s carbon market are immense, but the State Government will not allow unvetted projects to be rushed to market or traded on speculation.
“We will protect Sabah’s reputation and brand through strong regulatory discipline,” said Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor.
He said poorly designed projects, overstated climate claims, undervalued resources, and the exclusion of native communities would undermine investor confidence in Sabah’s carbon credits.
“It is therefore in Sabah’s commercial interest to uphold the highest standards of environmental, social, financial, and governance integrity. Buyers will demand full transparency,” he said at the Sabah Carbon Market Forum: Unlocking Carbon Market Opportunities for Sabah at the Hilton Hotel here on Thursday.
Deputy Chief Minister II/State Finance Minister, Datuk Seri Panglima Masidi Manjun delivered his speech.
He said laws like the Sabah Climate Change and Carbon Governance Enactment 2025, legally recognises the State Government’s ownership of carbon rights and setting clear rules for carbon-related activities, including project approval and credit trading.
“The Sabah Climate Change Action Council (SCCAC) will oversee the State’s climate policy, prepare the State carbon budget for ministerial approval and gazettement, and coordinates efforts between State and Federal agencies.
“The Sabah Climate Registry and Inventory Centre will provide technical and operational support to the SCCAC. Together, this framework is intended to offer investors a transparent, coordinated regulatory gateway for project approvals and registration of carbon rights,” he said.
Hajiji said Sabah has Malaysia’s first nature-based verified carbon credit initiative through the Kuamut Rainforest Conservation Project, which spans some 83,381 hectares of the state’s rich lowland and hill forests.
The project, expected to deliver emission reductions of about 800,000 tonnes of carbon dioxide (CO2), has set the benchmark for future initiatives and has since been rated best-in-class by BeZero Carbon, the global carbon credit ratings agency.
The Chief Minister said the State Government is also developing a diversified portfolio of carbon assets across key economic sectors, including the Blue Economy, Agriculture, Renewable Energy and Green Technology, as well as Carbon Capture and Storage.
Under the Blue Economy sector, Sabah has more than 340,000 hectares of mangroves, the largest continuous mangrove area in Malaysia.
“We have strong potential to become a regional leader in the blue economy through marine biotechnology, sustainable aquaculture, and marine ecosystem-based tourism,” he said.
In the agriculture sector, he said Sabah’s oil palm oil industry covers nearly 1.5 million hectares and offers significant opportunities for methane capture and other climate mitigation initiatives using agricultural waste.
For the Renewable Energy and Green Technology sector, he said that, guided by the Sabah Energy Roadmap and Master Plan 2040, the State Government will continue expanding solar, hydropower, biomass, and biogas to provide reliable, accessible, and affordable energy.
“Sabah aims to increase the share of renewable electricity by 2030 through solar, hydropower, and biomass projects,” he said.
In the Carbon Capture and Storage sector, Hajiji said Sabah’s offshore geological basins, together with our maritime frontier, offer long-term potential for geological carbon storage and position Sabah as a nationally significant industrial storage hub serving the region.
The Chief Minister said that with almost 30 per cent of Sabah’s landmass designated as Totally Protected Areas (TPAs), this would contribute towards Malaysia’s biodiversity commitments and the 2030 global conservation target under the Kunming-Montreal Global Biodiversity Framework and place the state prominently on the global conservation map.
“Sabah is also Malaysia’s primary net carbon sink, or carbon-negative state, based on greenhouse gas inventory data. Our extensive forest cover strengthens Malaysia’s overall carbon absorption capacity of roughly 36 per cent.
“Through inclusive forest management, created in partnership with local communities, we strive to balance environmental conservation with the socio-economic wellbeing of our people. Sabah’s identity and future are deeply rooted in our natural heritage,” he said.
“Under our Sabah Maju Jaya (SMJ) development roadmap, we are moving decisively towards conservation with value, turning the protection of our natural assets into responsible economic opportunities.
“The task now is implementation, and that is to develop credible projects, creating market demand, securing financing, and ensuring that conservation delivers lasting value,” he said.
Hajiji called on financial leaders, including CIMB Bank Berhad, Bursa Malaysia, commercial leaders, and investors, to develop or co-develop practical financing frameworks that can bridge the capital gap for credible carbon projects and meet the 2030 climate targets under the Paris Agreement.
“We invite you to partner with us, to invest in Sabah, establish your technical operations here and unlock the true value of our natural capital,” he said.-pr/BNN
